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Showa Chemical, Ordinary Profit Forecast for the Fiscal Year Revised Upward to an Unexpected 7% Increase
4990 Showa Chemical Industry Co.,Ltd. 【J-GAAP】
Earnings ReportShowa Chemical Industry Co.,Ltd. <4990> [TSE Std] announced its financial results in the afternoon session on November 14th (14:00). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2026 (April to September) expanded 476 million yen, an increase 91.2% compared to the same period last year, exceeded the previous forecast of 320 million yen.
In addition, the full-year forecast for consolidated ordinary profit has been revised upward 15.1%, from the previous forecast of 530 million yen to 610 million yen (compared to 571 million yen in the previous period), turning to a 6.8% increase in the consolidated ordinary profit outlook.
Based on the first-half performance announced by the company and the full-year plan, our calculation indicates that the consolidated ordinary profit for the October to March period (second half) is expected to significant drop 58.4% from the same period last year to 134 million yen.
In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit surged 2.8 times that of the same period last year, reaching 238 million yen. The operating profit margin improved from 4.6% in the same period last year to 5.5%.
Kabutan News
Actual Results
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Progress Rate vs. First Half | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Apr - Sep, 2023 | 4,822 | 381 | 504 | 415 | 39.2 | 70.1 | Nov 13, 2023 | J-GAAP |
| Apr - Sep, 2024 | 4,816 | 198 | 249 | 178 | 16.8 | 43.6 | Nov 14, 2024 | J-GAAP |
| Apr - Sep, 2025 | 4,843 | 276 | 476 | 335 | 31.5 | 78.0 | Nov 14, 2025 | J-GAAP |
| YoY | +0.6% | +39.4% | +91.2% | +88.2% | +88.1% |
First Half Results vs. Previous Guidance
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Apr - Sep, 2025 Guidance | 4,700 | 170 | 320 | 240 | 22.5 | 3 | May 15, 2025 | J-GAAP |
| Apr - Sep, 2025 Results | 4,843 | 276 | 476 | 335 | 31.5 | 3 | Nov 14, 2025 | J-GAAP |
| Revision Rate | +3.0% | +62.4% | +48.8% | +39.6% | +39.9% |
Guidance Update
Full Year Update
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Mar, 2026 Prev | 9,300 | 280 | 530 | 400 | 37.6 | 6 | May 15, 2025 | J-GAAP |
| Mar, 2026 New | 9,300 | 350 | 610 | 520 | 48.8 | 6 | Nov 14, 2025 | J-GAAP |
| Revision Rate | 0.0% | +25.0% | +15.1% | +30.0% | +30.0% |
Current Period Guidance
Second Half Results
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Oct - Mar, 2024 | 4,421 | 148 | 322 | 233 | 21.9 | 3 | May 15, 2025 | J-GAAP |
| Oct - Mar, 2025 Guidance | 4,457 | 74 | 134 | 185 | 17.4 | 3 | Nov 14, 2025 | J-GAAP |
| YoY | +0.8% | -50.0% | -58.4% | -20.6% | -20.8% |
Current Period Guidance
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Adj. Dividend | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Mar, 2024 | 9,196 | 503 | 719 | 584 | 55.1 | 8 | May 15, 2024 | J-GAAP |
| Mar, 2025 | 9,237 | 346 | 571 | 411 | 38.7 | 6 | May 15, 2025 | J-GAAP |
| Mar, 2026 Guidance | 9,300 | 350 | 610 | 520 | 48.8 | 6 | Nov 14, 2025 | J-GAAP |
| YoY | +0.7% | +1.2% | +6.8% | +26.5% | +26.2% |
Quarterly Results
| Fiscal Year | Revenue | Operating Profit | Ordinary Profit | Net Profit | Adj. EPS | Operating Profit Margin | Announce | Accounting Standards |
|---|---|---|---|---|---|---|---|---|
| Jul - Sep, 2024 | 2,393 | 110 | 84 | 65 | 6.1 | 4.6 | Nov 14, 2024 | J-GAAP |
| Oct - Dec, 2024 | 2,285 | 102 | 186 | 138 | 13.0 | 4.5 | Feb 14, 2025 | J-GAAP |
| Jan - Mar, 2025 | 2,136 | 46 | 136 | 95 | 8.9 | 2.2 | May 15, 2025 | J-GAAP |
| Apr - Jun, 2025 | 2,497 | 147 | 238 | 166 | 15.7 | 5.9 | Aug 14, 2025 | J-GAAP |
| Jul - Sep, 2025 | 2,346 | 129 | 238 | 169 | 15.9 | 5.5 | Nov 14, 2025 | J-GAAP |
| YoY | -2.0% | +17.3% | +183.3% | +160.0% | +160.0% |
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